Grayscale Files for Privacy ETF with SEC, Including Zcash
Crypto-focused asset manager Grayscale has submitted a filing to the US Securities and Exchange Commission (SEC) for a privacy-focused exchange-traded fund (ETF). The proposed Grayscale Privacy ETF aims to track the performance of five sub-categories related to data security, privacy, and cybersecurity services. It will also include products incorporating blockchain, artificial intelligence, and edge computing solutions. The ETF will allocate 10% of its portfolio to privacy-preserving protocols, with the inclusion of the Grayscale Zcash Trust (ZCSH). Grayscale’s filing is significant due to its status as one of the largest cryptoasset management firms, and its success in launching the world’s largest bitcoin ETF.
Allocating 10% to Privacy-Preserving Protocols
The Grayscale Privacy ETF will dedicate 10% of its portfolio to privacy-preserving protocols, including the Grayscale Zcash Trust (ZCSH). Zcash is a digital asset that prioritizes user privacy by allowing transactions without disclosing sensitive details. The purpose of ZCSH is to provide investors with convenient access to investment opportunities in Zcash without the complexities of direct purchase and storage.
Criteria for Inclusion in the ETF
The companies included in the privacy-preserving protocol category of the ETF must meet certain criteria:
- Offer publicly traded securities in the US
- Be publicly traded on US, non-US developed markets, or emerging market stock exchanges
- Have a market capitalization of at least $250 million
- Fulfill specific liquidity criteria
Grayscale’s Impact in the Crypto Industry
Grayscale’s filing for a privacy-focused ETF highlights its position as a leading cryptoasset management firm. With approximately $27 billion in assets under management, Grayscale is known for its role in facilitating the approval of Bitcoin ETFs. Last year, it successfully converted its Grayscale Bitcoin Trust into an ETF, which became the world’s largest bitcoin ETF with around $23 billion in assets under management.
Hot Take: Grayscale Expanding Crypto Investment Opportunities
Grayscale’s filing for a privacy-focused ETF demonstrates its commitment to expanding investment opportunities in the crypto market. By including companies focused on data security, privacy, and cybersecurity services, as well as innovative technologies like blockchain and artificial intelligence, the ETF provides exposure to diverse sectors of the industry. The inclusion of Zcash further emphasizes the importance of privacy in the digital asset space. Overall, Grayscale’s continued efforts to launch new investment products contribute to the growth and development of the crypto ecosystem.
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